Addressing the Crisis of Illicit Financial Flows in Africa
Professor Ozonia Ojielo, United Nations Resident Coordinator and Representative of the UN Secretary-General in Rwanda, emphasized the urgent need for Africa to ensure that its wealth benefits its people rather than a privileged few. This message was delivered during the opening of the 13th Pan-African Conference on Illicit Financial Flows and Taxation (PAC 2025) in Johannesburg, South Africa. The event brought together tax justice stakeholders, civil society organizations (CSOs), government representatives, academia, and international partners to address critical issues surrounding corruption, illicit financial flows (IFFs), and unfair global tax practices.
Professor Ojielo’s keynote address underscored the importance of reclaiming sovereignty, financing development, and restoring trust among citizens. He stated, “Africa’s resources must benefit its people, not elites.” The conference, held from October 7 to 10, 2025, was organized by the Economic Justice Network of FOCISSA and co-hosted by PAC in collaboration with the Tax Justice Network Africa, the African Union (AU), and the African Tax Administration Forum (ATAF). It focused on the theme: “Honouring a Legacy, Building a Future: A Decade of the HLP Report.”
The conference also marked the 13th edition of PAC, providing a platform to reflect on progress made since the landmark 2015 High-Level Panel (HLP) report on illicit financial flows and to chart new strategies for domestic resource mobilization, tax justice, and global economic governance.
Historical Context and Structural Reforms
In his address, Professor Ojielo traced Africa’s current economic challenges to a 700-year history of exploitation and inequitable trade relationships with Europe. He highlighted that Africa played a foundational role in the Industrial Revolution, with its resources and labor contributing significantly to Europe’s development. “Africa is the foundation of the Industrial Revolution,” he said. “Initially, it was on the backs of our ancestors, through the sugar cane factories, the cotton factories, and the production processes.”
He stressed the need for structural reforms in international taxation, emphasizing the importance of coalition building and a new dialogue with Europe. “We need Europe to open its hands so we can have a handshake between Africa and Europe, as we are connected in terms of geography, history, and experience,” he said. This requires a different degree of engagement with European civil society and universities, as well as a focus on defining Africa’s own priorities rather than relying on global norms designed elsewhere.
Governance and Corruption
Professor Ojielo also addressed the issue of corruption and governance, highlighting a duality in African societies. He noted that while communities often uphold values of fairness and accountability, these principles are frequently absent at the national level. “In your village, in your community, you dare not take from the common pot. You will be ostracized, and the narrative persists for centuries: they are a family of thieves because they stole from the common pot. Yet when appointed to central government, one can steal as much as they want and be honored as a person of distinction.”
He argued that African governance structures, often inherited from colonial administrations, were never designed to reflect indigenous values or ensure accountability. “Governance is about values. It is about belief systems, how you see yourself, your society, and your role in it. Accountability is central, but if the system diverges from the lived experience of the people, it will fail,” he said.
Challenges in Recovering Stolen Assets
Professor Ojielo also highlighted the challenges African countries face in recovering stolen assets. He referenced an example from Kyrgyzstan, where a fund was created to manage recovered monies and return them to Uzbekistan. “Why is it so difficult in Africa? The obstacles are political, structural, and deeply rooted in governance systems,” he said.
He warned against the role of political elites, collusion between business and officials, and the capture of oversight institutions in enabling IFFs. “A colleague in West Africa had to disappear in the night disguised as a woman to cross a border after announcing investigations into top-level officials. This shows that even when laws exist, implementation remains a major hurdle,” he said.
Domestic Resource Mobilization and Technology
In addition to governance reforms, Professor Ojielo emphasized the importance of domestic resource mobilization. He outlined the critical link between taxation, trade, investment, and sustainable development. “Aid alone cannot drive development. Countries must harness domestic resources through fair taxation, investment-friendly policies, and support for local entrepreneurship,” he said.
He also highlighted the role of demographics and domestic savings in economic empowerment. “If you have a family of seven children and limited economic opportunities, how can that family thrive? Domestic savings provide capital for local lending at reasonable rates. Women, children, youths, and young people must become financially autonomous to support domestic economic growth,” he said.
Professor Ojielo pointed to technology as a crucial tool for transparency and reform. “Artificial intelligence allows us to track financial flows and discrepancies in record-keeping in minutes. This is an opportunity to accelerate reforms and expose illicit activities,” he said.
Strengthening Partnerships and Action
He called for strengthened partnerships among civil society, governments, and international organizations to foster accountability and reform. “Class actions, legal innovations, and technology-driven transparency can have transformative impacts on education, governance, and economic justice,” he said.
Professor Ojielo urged participants to translate discussion into tangible action, emphasizing that billions lost to illicit flows could be redirected to public investment, education, and health if bold reforms are enacted. He highlighted the African Continental Free Trade Area as an opportunity to harmonize tax, customs, and transparency standards, urging African countries to seize the moment.
Conclusion
Mandla Hadebe, Executive Director of the Economic Justice Network, welcomed delegates and underscored the moral imperative of the conference. “Illicit financial flows have been draining vital resources needed to build prosperous, equitable, and sustainable nations. This conference is a rallying cry for action. It reminds us that the fight against tax injustice is moral, not just technical,” he said.
He emphasized that Africa’s resources should serve the people equitably and that robust tax systems are essential for social services, infrastructure, and sustainable development. “We must forge new solutions, strengthen multi-stakeholder alliances, and advocate for policies that promote economic justice,” Hadebe said.
Where our treasure is, there our heart must be also—in the service of justice, fairness, and equity.
